Question

Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan? Why is it important?

Answer 1

Answer:

To decide if a project is feasible or not.

Explanation:

Feasibility analysis is an important tool to determine if a business model should be attempted or not. It helps to determine all the aspects of a business from a social perspective to economic aspects. Before implementing a project a feasibility report is designed to analyse the worth of a project and whether it is feasible to continue the project or not.

It is important to conduct a feasibility study before the business plan. If the feasibility study shows positive results than it is feasible to move towards designing a business plan. A business plan is developed after the opportunity is created and that opportunity is created by feasibility analysis. So, a feasibility analysis is very important to identify and execute an opportunity.